Ruby Tuesday Falls 10% Following Q2 Results

Shares of Ruby Tuesday, Inc. RT fell Thursday as financial results for its fiscal second quarter disappointed investors.

Total revenue came in at $262.7 million, below estimates of $268.43 million and the $276.2 million reported in the same quarter of the prior year, a decrease of $13.5 million, reflecting the closing of 42 restaurants since the second quarter of the prior year and a decrease in same-restaurant sales at Company-owned Ruby Tuesday restaurants.

Net loss from continuing operations of $9.3 million compared to net loss of $34.7 million from continuing operations for the same quarter in the prior year.

Diluted loss per share from continuing operations of $0.15, inline with expectations and below the diluted loss per share from continuing operations of $0.58 in the same quarter of the prior year.

Same-restaurant sales decreased 1.0 percent at Company-owned Ruby Tuesday restaurants compared to the same quarter of the prior year. Same-restaurant guest counts at Company-owned Ruby Tuesday restaurants were down 1.3 percent compared to the same quarter of the prior year.

JJ Buettgen, Chairman of the Board, President and CEO, commented, “While our same-restaurant sales and guest count growth slowed, our same-restaurant guest count performance was in-line with the Knapp Track industry benchmark.”

Ruby Tuesday traded at $6.39 in the after-hours session, down 10 percent.